Pulp Market Facing Challenging Scenario in Prices and Demand

Comments on Business

• Decrease in demand for printing and writing in Brazil.
  
• Decline in pulp prices and appreciation of the BRL were the main factors reducing adjusted EBITDA.
  
• Increase in expenses.
  
• Decline in pulp sales even with higher demand in China.
  

KPI Driving Revenue and Earnings

• Pulp sales volume and revenue -6% vs. 2Q22.
  
• Paper sales -9% vs. 2Q22.
  
• 2Q23 Adjusted EBITDA -38% YoY.
  

Catalysts
Bad earnings should be a catalyst for the stock price to decline.

Trade Structure
Entry: 10.71
Target: 9.29
Stop: 12.12